KNX Bull Call Spread Strategy
KNX (Knight-Swift Transportation Holdings Inc.), in the Industrials sector, (Trucking industry), listed on NYSE.
Knight-Swift Transportation Holdings Inc. (KNX) stands as a prominent provider of transportation services, specializing in truckload freight solutions for clients throughout the United States, Mexico, and Canada. Its operational scope is segmented into four key areas: Trucking, Logistics, Less-than-truckload (LTL), and Intermodal. Under its Trucking segment, the company manages a diverse portfolio of services, including irregular route, dedicated, temperature-controlled (refrigerated), flatbed, expedited, dry van, drayage, and cross-border transportation for a wide variety of goods and materials. Beyond its core trucking operations, Knight-Swift provides logistics and intermodal solutions, which include freight brokerage, intermodal services, comprehensive freight management, and various non-trucking offerings. The firm also extends a suite of support services, such as vehicle repair and maintenance, warranty coverage, insurance, equipment leasing, manufacturing and warehousing of trailer parts, and professional driver training through its academy. Additionally, Knight-Swift facilitates national transportation requirements through its regional direct services, utilizing third-party carriers to cover regions outside its proprietary network.
KNX (Knight-Swift Transportation Holdings Inc.) trades in the Industrials sector, specifically Trucking, with a market capitalization of approximately $11.61B, a trailing P/E of 270.02, a beta of 1.19 versus the broader market, a 52-week range of 38.63-82.86, average daily share volume of 4.1M, a public-listing history dating back to 1994, approximately 37K full-time employees. These structural characteristics shape how KNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.19 places KNX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 270.02 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. KNX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a bull call spread on KNX?
A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width.
KNX snapshot
As of August 14, 2026, spot at $72.16, ATM IV 34.40%, IV rank 22.90%, expected move 9.86%. The bull call spread on KNX below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this bull call spread structure on KNX specifically: KNX IV at 34.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a KNX bull call spread, with a market-implied 1-standard-deviation move of approximately 9.86% (roughly $7.12 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on KNX should anchor to the underlying notional of $72.16 per share and to the trader's directional view on KNX stock.
KNX bull call spread setup
The KNX bull call spread below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With KNX at $72.16 on that close, the first option leg uses a $72.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KNX chain at a 7-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 KNX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $72.50 | $1.40 |
| Sell 1 | Call | $75.00 | $0.58 |
KNX bull call spread risk and reward
- Net Premium / Debit
- -$82.50
- Max Profit (per contract)
- $167.50
- Max Loss (per contract)
- -$82.50
- Breakeven(s)
- $73.33
- Risk / Reward Ratio
- 2.030
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit.
KNX bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on KNX. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$82.50 |
| $15.96 | -77.9% | -$82.50 |
| $31.92 | -55.8% | -$82.50 |
| $47.87 | -33.7% | -$82.50 |
| $63.83 | -11.6% | -$82.50 |
| $79.78 | +10.6% | +$167.50 |
| $95.73 | +32.7% | +$167.50 |
| $111.69 | +54.8% | +$167.50 |
| $127.64 | +76.9% | +$167.50 |
| $143.59 | +99.0% | +$167.50 |
When traders use bull call spread on KNX
Bull call spreads on KNX reduce the cost of a bullish KNX stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
KNX thesis for this bull call spread
The market-implied 1-standard-deviation range for KNX extends from approximately $65.04 on the downside to $79.28 on the upside. A KNX bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on KNX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current KNX IV rank near 22.90% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on KNX at 34.40%. As a Industrials name, KNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KNX-specific events.
KNX bull call spread positions are structurally moderately bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. KNX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KNX alongside the broader basket even when KNX-specific fundamentals are unchanged. Long-premium structures like a bull call spread on KNX are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current KNX chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on KNX?
- A bull call spread on KNX is the bull call spread strategy applied to KNX (stock). The strategy is structurally moderately bullish: A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width. With KNX stock at $72.16 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed KNX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are KNX bull call spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit. For the KNX bull call spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.40%), the computed maximum profit is $167.50 per contract and the computed maximum loss is -$82.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KNX bull call spread?
- The breakeven for the KNX bull call spread priced on this page is roughly $73.33 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The KNX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bull call spread on KNX?
- Bull call spreads on KNX reduce the cost of a bullish KNX stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
- How does current KNX implied volatility affect this bull call spread?
- KNX ATM IV is at 34.40% with IV rank near 22.90%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.